Research On Value Management Of Enterprise Based On Free Cash Flow Of Jiaoda Onlly

The first chapter in recent years, Chi’nas capital market development ismore and more perfect, the listing Corporation the number and size ofconstant growth, enterprise as the main body of market economy will alsoenter the market, but the enterprise as a whole economic value do not haveavailable quantity of value, need to assess the value of enterprises can beobtained. Although Chi’nas enterprise value evaluation has also theapplicability of the capital market is not perfect enough, theoretical researchlags behind the practice needs to be perfect, methods and other issues, butthese are unable to prevent the further application of theories and methods of’enterprise value assessment in Chinas practice and development. At the sametime, the enterprise value assessment is not only an assessment of the valueof the tool, becomes the enterprise to enhance the value, improve themanagement approach.The second chapter summarizes the enterprise value and enterprisevalue assessment theory, thought to be restricted due to market conditions and other factors, China adopts the cost evaluation method of traditional, didnot assess the widespread use of discounted free cash lfow model. Withmergers and acquisitions, equity trading activities flourished, the furtherdevelopment of capital market, property market, how to combine the foreignexperience, the establishment of a suitable for China enterprise valueassessment model is th’e inevitable trend of Chinas enterprise managementand development of the market economy.The third chapter introduces the development environment of LPNational Chiao Tung University, believes that as China and the globaleconomic communication deepens, multinational companies have enteredChi’nas market. In the health care industry in the United States, GNC, NBTY,industry giants have entered China market, speed up the domestic health care"products industry market development efforts, Chinese health food cak"e tocarve up the war is more and more fierce, Chinese health food companiesthreatened.The fourth chapter, the free cash lfow based on the enterprise valueassessment Jiaoda LP Jiaoda LP, think the market value was significantlyhigher than the assessed value, this also allows us to consider in detail thehypothesis we assessed the value of the enterprise. At the same time, themain reason of high market value may also be on the development prospectsof the company optimistic about the market, and then to the stock marketvalue. The fifth chapter, we make a research on Value Management of LPJiaoda enterprise. We find that the company has a low operating incomegrowth rate which means the operating income of this company growthslowly. So it should explore new sales channels and expand productioncapacity actively to increase operating income. If the operating incomegrowth rate rises7%, the intrinsic value per share will rise to6.5yuan from5.49yuan. So the sensitivity coefficient between income growth rate andintrinsic value per share is2.62, which means the intrinsic value per sharewill increase by2.62%while the income growth rate increases by1%. So thiscompany should expand business to increase cash flow and get a highergrowth rate of the intrinsic per share. The company has been a financialenterprise is relatively conservative, the debt scale and proportion ofcompetitors are in low level relative t’o the companys credit level, and abilityto repay is also at a high level, it should be said that the current conditions toimplement strategic the large investment, new production capacityconstruction, new energy technology and industrial chain upstream controlconstruction are required in the project plan.